In a May 29 filing, the US Department of Justice (DOJ) confirmed its intent to appeal the US Court of International Trade (CIT)’s sweeping order requiring refunds of IEEPA duties. The government’s central argument is that the CIT exceeded its authority by directing refunds for entries that are “finally liquidated”—generally those more than 90 days past liquidation—particularly for importers that have not filed suit.
According to the DOJ, U.S. Customs and Border Protection (CBP) may only issue refunds for these entries through importer-specific court orders and is not authorized to conduct broad, programmatic reliquidations beyond the statutory 90-day window. This position directly conflicts with the CIT’s interpretation that all importers who paid unlawful duties are entitled to a refund, regardless of litigation status.
The DOJ has also indicated it will appeal a separate CIT order requiring CBP Commissioner Rodney Scott to testify in person at a June 9 hearing, arguing that such testimony is unnecessary and inconsistent with precedent involving senior government officials.
CAPE Updates
Despite the legal dispute, CBP continues to process refunds through its Consolidated Administration and Processing of Entries (CAPE) system. The agency reported that approximately $85 billion in refunds have been accepted for processing out of roughly $166 billion in total IEEPA duties collected.
CAPE, launched in April 2026, is designed to streamline refunds at scale; however, its current functionality is limited. Phase 1 primarily covers unliquidated entries and entries still within the voluntary reliquidation period (80 days after liquidation), leaving a substantial portion of “finally liquidated” entries unaddressed. A court update by CBP is due on June 10th to provide further updates to CAPE roll-outs to currently excluded entries, including finally liquidated entries, entries containing antidumping or countervailing duties, and entries that are contained on Reconciliation or Drawback entries.
Implications for Importers
For importers, the evolving legal landscape remains a driver of uncertainty. While significant refunds are already being processed, companies with finally liquidated entries may face delays or may need to pursue litigation to secure recovery, depending on the outcome of the appeal.
In the meantime, importers should:
- Monitor the status of their entries and eligibility under CAPE
- Monitor CAPE developments
- Ensure proper enrollment in CBP’s automated refund systems
- Consider Protests on finally liquidated entries less than 180 days after liquidation
Tradewin Support
Please reach out to us should you have any questions on CAPE updates, require support with entry analysis, or require support with protests on finally liquidated entries. We’re here to help.
